“You shouldn’t go in more debt than your first year salary” - Yes, I’ve heard that too. But generally it has been in discussion of debt to justify college diploma over hs diploma (ie minimum-ish wage - $20K/year).
You could debate the exact numbers/situations, but the idea is that a higher salary (example - engineering) more easily justifies debt than a lower salary (teacher, theater etc). With lower salary, it would be tougher to repay high debt.
@Caleb1212, Before the thread was closed, there was overwhelming advice that Michigan unfunded was a bad idea…overwhelming, backed by evidence. My question for you is…by reopening the thread, what is it that you’re hoping to learn beyond what you’ve already been told?
I will concede that Michigan almost certainly carries more weight in finance and IB circles, but I’d still question if it is enough to make it worthwhile, since those sorts of jobs are still far from easy to get. It’s still only a slim chance anyone trying this route actually makes it, and then they are more likely than not to be saddled with $110,000 in debt without that IB salary to make it a non-issue.
The OP keeps asking in hopes of getting info to help convince his parents (who likely would need to co-sign that whopper loan). He won’t find it in this group of logical, analytical engineers who took Econ and understand compound interest and time value of money.
Perhaps there are some IB stars that got lucky and would think it’s a good investment. But they are unlikely to have the time/interest to share wisdom on Engineering forums.
Well, I’m NOT a “logical, analytic” engineer and I also think going into major debt i for a Master’s degree from Michigan makes no sense.
I got a C in econ.
None of this is rocket science . It does not take superior analytical skills or an engineering background to figure that 80- 110,000 dollars in debt for Michigan is not wise. It just takes common sense .
Agreed - not rocket science. In fact, my micro econ class was mostly plug/chug formulas for present value / future value problems (which today could be done easily with online websites or calculator button). But it gave me a keen sense of interest rates etc before i experienced it the harder way in real world responsibilities.
The International Banker folks probably have more sophisticated ways to analyze… and predict it is a good investment to go to Michigan. But they are likely geared toward gambling on “best case” assumptions for landing a top salary job. I still say the uncle that thinks it is a good idea ought to put his own money on the line by co-signing.